What type of organization structure includes a board of directors and shareholders?

A corporation is a legal entity that is separate from its owners, which means it can enter into contracts, sue or be sued, and own assets in its own name. One of the defining features of a corporation is its structure, which typically includes a board of directors elected by the shareholders. The board of directors is responsible for overseeing the management of the corporation and making decisions on behalf of the shareholders, who are individuals or entities that own shares in the corporation. This structure allows for a clear distinction between ownership and management, providing limited liability to the shareholders for the debts and obligations of the corporation.

In contrast, a sole proprietorship is owned and operated by an individual, lacking a formal board and the involvement of shareholders. An agency typically refers to a relationship where one party acts on behalf of another in business dealings, without implying ownership stakes or corporate governance structures. A franchise is a business model where one party licenses the use of its trademark and business system to another entity, which also does not entail ownership through shares or a board of directors. Therefore, the defining characteristics of a corporation make it the only choice that fits the description given.