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In this video tutorial, Kevin demonstrates how to create an electronic signature in Microsoft Word using various techniques, each offering different quality levels. He explains how to reuse the signature easily by saving it as a transparent PNG and utilizing the Quick Parts feature in Word. Kevin clarifies that the electronic signature is an image of a handwritten signature, distinct from a digital signature, which is a certificate that verifies identity. He proceeds to show the process on the PC, starting with a contract that requires a signature.