1) Well, it's possible all the data that generates the chart is in the database and your boss wants to put together a quarterly report. The chart is generated in an Access report, but your boss is writing th report in Word. Therefore, you need to export the chart out of Access and import it into Word. When you do, does the boss want just a static picture of the chart that is absolute (embedded) OR does your boss want the chart to change values automatically every quarter without having to re-import it (linked)?
2) Again, it has to do with who want to write the report how. Is the Access report a small part of a much larger report done in Word by another department? Access report formatting is not as flexible as in Word. Perhaps the person wants to use fonts, columns, photos, etc. and place them in such a way that it's a pain in the ASCII to do in Access.
Michigan Dept. of Environmental Quality, Air Quality Division