What is the term for financial resources retained by a company for future use?

The correct term for financial resources retained by a company for future use is "retained profits." This refers to the portion of a company's net earnings that are reinvested in the business rather than distributed to shareholders as dividends. Retained profits serve as an essential source of internal financing, enabling the company to fund operations, invest in new projects, or settle debts without seeking external financing options.

In contrast, investments generally refer to the assets bought with the intent of generating income or appreciation but do not specifically denote funds retained within the company. Debentures are a form of long-term debt that companies issue to raise capital, representing borrowed funds rather than retained earnings. Dividends are the portion of profits distributed to shareholders, which does not align with the idea of retaining financial resources for future use. Thus, "retained profits" effectively captures the concept of accumulating earnings to support the company’s future growth and stability.