Linking vs. Embedding: A Comparison | Microsoft Word Version 2002 Inside Out (Inside Out (Microsoft))

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Linking and embedding a file might seem like the same process at first. In fact, they are two very different processes, each providing a different function:

Linking a file establishes a link between the original (source) file and the file to which you copied the data (destination). Whenever you change the information in the source file, the destination file is updated.
Embedding a file places an intact copy of the source in the destination file. Although changing the source doesn't affect the destination file, you can edit the object in the destination file by double-clicking it. You can then edit the object without quitting Word.

Tip - Cut to the Chase

The biggest difference between linking and embedding is the file in which the data is stored (source or destination) and how it's updated (at the source, or originating program, or in the destination document).

Good Candidates for Linking and Embedding

Linking an object is a good choice when you need to keep data in your documents up to date. Here are a few examples:

You're creating a draft of a report that includes slides from a PowerPoint presentation that's not yet finished. If the document is linked to the presentation file, when you finish the presentation, the document will reflect the changes.
You have a new logo design for your business, and you're trying it out on letterhead. If you maintain the link to the draw file in which the logo is stored, when you change the logo, the letterhead will reflect the changes.
You have a sales report due this afternoon, but not all the numbers are in from your regional sales staff. If you import the part of the Excel spreadsheet that's ready and establish a link when you update the information later, the file will reflect the changes.

Embedding objects is a good idea when you don't need to maintain a link but want to edit the object in your document. Here are some examples of embedding:

You want to send a snapshot of current Excel data to a coworker, but the information is likely to change.
You want to add a finished spreadsheet object. You don't need to maintain the link, but you might want to change the format or values later.
You've added an organization chart, but when you send the document to different audiences, you need to change the roles that are displayed.

Note

Linking an object to a file establishes a one-way link to the source document. When you change the information in the source—for example, when you change the name of a product in the PowerPoint presentation you've imported—the same change is reflected in the document to which you've linked the information.

Tip - Link for Small File Size

When you want to keep your files small, linking is your best bet. Because linked files store only a pointer to the source file, the destination file size increases only a little. Although these types of links introduce other potential problems (such as broken links to deleted or moved source files), they give you the flexibility you might need when size is a consideration.