What does the 'return' statement do in a function?

The 'return' statement in a function serves the crucial role of exiting the function's execution and optionally providing a value back to the caller. When a function is invoked, it performs its operations until it reaches a return statement. At that moment, the function will stop executing further code within its body. If a value is specified after the 'return' keyword, this value becomes the output of the function, allowing the caller to utilize it. If no value is specified, the function will return None by default in languages like Python.

This mechanism is essential for functions as it enables them to produce results that can be used elsewhere in the program, allowing for more modular and reusable code. In contrast, the other choices do not accurately describe the behavior of the 'return' statement; pausing a function, creating a new function, or calling another function do not relate to the specific purpose of returning a result from a function's execution.