Final answer:
The hair bulb is the portion of the hair beneath the skin surface and is the structure responsible for hair growth, containing living cells within the skin.
Step-by-step explanation:
The portion of the hair found beneath the skin surface is called the hair bulb. This hair bulb is the structure that is deep in the dermis at the end of the hair root, and it encompasses the hair matrix, which is a layer of actively dividing basal cells. The hair bulb is responsible for the production of new hair cells, which keratinize and form the hair shaft as they are pushed upwards. While the hair shaft consists of the medulla, cortex, and cuticle layers, all formed from the hair matrix, it is the hair bulb that contains living cells and is embedded within the skin.