The main differences between linked objects and embedded objects are where you store the data and how you update the data after you place it in the destination file.
Embedded object
Linked object
Source file
When an object is linked, information is updated only if you modify the source file. Linked data is stored in the source file. The destination file stores only the location of the source file and displays a representation of the linked data. Use linked objects if file size is a consideration.
When an object is embedded, information in the destination file doesn't change if you modify the source file. Embedded objects become part of the destination file and, once inserted, are no longer part of the source file. Double-click the embedded object to open it in the source program.