to cut out the background on word first you must open word and then click insert then click on picture like shown below.
then you must choose the image you would like to use for your work and then click insert once you have found the image you wanted.
and say for your work the back ground is black and you want the image to blend in and not have a stupid white background round the image? like below
to change this just double click the image and the tool bar will change and in the top right corner will then have several words click on "recolour" as shown below.
once you click on this a little drop down will appeare like shown below, then you click "set transparante colour"
then once you have click on it a mouse will appear then you just click on the outer color and it will then change to the same as the background colour, job done!
like shown below.