In Photoshop, I've been taught not to carry out adustments from the Image menu but to do each adjustment in a separate layer and flatten at the end, as this is less destructive of the image. I normally do minimal adjustments in ACR (3.3), mainly shadows and highlights, maybe white balance. Does this also impair the image?
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No, the adjustments are only applied (rendered) when the RAW file is saved out as a TIFF or exported to Photoshop. The adjustments may be thought of as a set of 'instructions; these are stored with the image file but do not affect the original data.