STEP-BY-STEP ANSWER:
Step 1: Identify that a compound is a substance where atoms of different elements are chemically bonded, forming a new substance with unique properties.
Step 2: Note that in a mixture, the individual components are physically combined and retain their original identities.
Step 3: Understand that compounds have fixed ratios of elements, while mixtures can have variable proportions.
Final Answer: The key difference is that compounds involve chemical bonds creating a new substance, whereas mixtures are physical combinations of substances without new chemical bonds.