What is the difference between linking and embedding placed digital images in Illustrator?

Linking and embedding images in Adobe Illustrator serves different purposes in the management of digital assets within a document.

The correct answer illustrates that a linked image remains an independent file outside of the Illustrator document. This means that if changes are made to the source file, those updates can be reflected in the Illustrator project, keeping file sizes smaller and allowing for easier updates. The linked image retains its original quality and resolution since it is not altered or compressed within the Illustrator file itself.

On the other hand, an embedded image is incorporated directly into the Illustrator document itself. This embedding involves storing a complete copy of the image within the file, which can make the document larger. The image embedded in the document is accessible regardless of the original file's location or status, but it does not update if changes are made to the original file.

The other choices do not correctly represent the fundamental difference between linking and embedding. Linking does not imply that the image is part of the document; rather, it relies on the external file, while embedding does not make the image independent, as it becomes part of the document itself. Therefore, understanding this distinction is crucial for choosing the right method for incorporating images based on the needs of the design project.