When an object is embedded, information from one document is inserted into a document in a different application. Embedding is similar to copying, but with one significant difference; to make changes to an embedded object, the user simply selects the object from within the destination document. The application in which the object was created is invoked, and the user may make the required changes. There is no need to switch among applications to view or change different kinds of information; it is all in one document.
When an embedded object is modified, the source document is not affected. For example, if a drawing is embedded into a report, changes made to the drawing within the report do not affect the original drawing which resides in its own file.
When an object is linked, many documents can share a single item of information. The object itself is not placed into the destination document; rather, a representation, or placeholder, for the object being linked is placed into the document. The object still exists in the source document, and the destination document merely contains a link to the object's location in the source document.
When changes are made to a linked object, the source document and any other documents linked to the object will reflect the changes. For example, if a drawing is linked to a report, any changes you make to the drawing appear in the source document and in any other reports linked with the drawing.
Access may be gained to the object from any document that contains a link to it, and changes may be made to the object from within any such document. The updated version automatically appears in all the documents that have a link to this object. Linking makes it easy to track information that appears in more than one place and which must be identical.
Only objects from saved documents may be linked. For example, if a drawing is created using Paintbrush, the drawing must be saved as a document before it may be linked from another document.
Not all applications can provide and accept objects. Some may only be the source of objects (server applications). Others (client applications) may only accept objects.