Selection vs Grouping

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Question 1: The total number of different combinations of these letters can be made from letters of the word 'MISSISSIPPI"?

Question 2: How many different words can be formed with the letters of the word 'MISSISSIPPI'?

My question: What is the difference between above two questions which would then help me understand how to calculate the answers?

I understand question 1 involves selecting from set of alike and different objects and question 2 involves group. I want to understand why.

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A combination refers to the selection of a subset of the elements in some specified collection, usually a set. In this case, you are selecting a subset of a multiset since some of the letters in MISSISSIPPI are repeated. In a combination, what matters are which objects are selected, not the order in which they are selected.

A word is a sequence of characters from some specified alphabet. The order of the letters in the string matters, so IMSS is considered to be different from MISS.