Key switch. Get one. They are about $25, they go bad on these (77/78 750's, 750F's, 550's after '76) bikes like crazy. Now, the p.o. may have cut the harness to wire in the toggle switch. (I have done the toggle switch thing, myself, but I don't cut the harness)
In which case it's probably best to put in a new harness. You can still get brandy-new ones for about $100, may seem expensive, but a lot less than burning your bike down.
Good luck,
Chris in Boston