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When an object is linked, the source data, or link source, continues to physically resides wherever it was initially created, either at another point within the document or within a different document altogether. Only a reference, or link, to the object and appropriate visual representation of the data is kept with the compound document.
Linking is efficient and keeps the size of the compound document small. Users may choose to link when the source object is owned or maintained by someone else because a single instance of the object's data can serve many documents. Changes made to the source object are automatically reflected in any compound documents that have a link to the object. From the user's point of view, a linked object appears to be wholly contained within the document.
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