Final answer:
Cholesterol is found in the lipid bilayer of cell membranes, embedded within the phospholipid tails.
Step-by-step explanation:
Cholesterol is found in the lipid bilayer of cell membranes. It is embedded within the phospholipid tails, penetrating both lipid layers. Cholesterol is an integral part of plasma membranes and is important for maintaining membrane fluidity and stability.