Both linking and embedding insert information from one document into another document. Also, with both linked and embedded OLE objects, you can edit the object from within the container application. However, linking and embedding store information differently.
The relationship between embedding and linking is similar to that between inserting a block and creating an external reference in AutoCAD LT.
An embedded OLE object is a copy of information from another document. When you embed objects, there is no link to the original document and any changes made to the original document are not reflected in other documents. Embed objects if you want to be able to use the application that created them for editing but you do not want the OLE object to be updated when you edit information in the original document.
Embedded object
A linked object is a reference to information in another document. Link objects when you want to use the same information in more than one document. Then, if you change the original information, you need to update only the links in order to update the document containing the OLE objects. You can also set links to be updated automatically.
When you link a drawing, you need to maintain access to the server application and the linked document. If you rename or move either of them, you may need to reestablish the link.
Updating linked documents