resize
- hold shift while dragging to resize proportionally
- hold shift+alt to resize proportionally plus stay centered
rotate
move whole object around
reshape: edit individual anchor points
- Pathfinder panel
- cut A out of B, or vice versa
- join A and B
to cut letters out, first convert the text to objects
- paste raster image onto page
- select the image
- Object menu > Image Trace > Make
- Image Trace panel > tweak options
- Properties panel > Expand
now you can work with the vector shapes