Final answer:
The liver produces and excretes bile as a byproduct of liver function. Bile aids in the digestion and absorption of fats by breaking down large globules of lipids into smaller ones. It also helps to create a more neutral environment for digestive enzymes in the small intestine.
Step-by-step explanation:
The liver produces and excretes bile as a byproduct of liver function. Bile is a fluid that aids in the digestion and absorption of fats. It breaks down large globules of lipids into smaller ones that are easier for enzymes to chemically digest. Bile also helps to reduce the acidity of food entering the small intestine, creating a more neutral environment for digestive enzymes to work.