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Kevin demonstrates creating an electronic signature directly in Microsoft Word. He shows different techniques for creating signatures of varying quality levels. Once the signature is created, he shares methods to quickly and easily reuse it, such as saving it as a transparent PNG or using quick parts within Word. He clarifies that an electronic signature is an image of a handwritten signature, not to be confused with a digital signature that validates identity. Watch as Kevin guides through the process on creating an electronic signature in Word.