A solution is a homogeneous mixture of two or more substances, where a solute is dispersed molecularly within a solvent. The key factors that affect solubility include the nature of the solute and solvent as well as temperature. A suspension, on the other hand, is a heterogeneous mixture where insoluble particles remain dispersed but do not dissolve in the solvent. Common examples of solutions include sugar in water and soap in water, while suspensions include flour in water and sand in water.