Which statement correctly distinguishes a geometric sequence from an arithmetic sequence?

A geometric sequence has a constant ratio between consecutive terms, while an arithmetic sequence has a constant difference between consecutive terms.

A geometric sequence always has increasing terms and is defined by adding the same number each time, which contrasts with arithmetic sequences that multiply by a constant factor between terms.

Geometric sequences are those in which the terms are always decreasing, whereas arithmetic sequences are those in which the terms are always increasing.

A geometric sequence is one in which a term is the square of the previous one, while an arithmetic sequence has a constant difference between consecutive terms.