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The term that describes a company’s profit retained for reinvestment rather than distributed as dividends is retained earnings. Retained earnings represent the cumulative amount of net income that a company has decided to keep rather than pay out to shareholders. These funds can be utilized for various purposes, such as reinvesting in the business for expansion, paying down debt, or financing research and development, which can contribute to the company's long-term growth and stability.

This distinction is critical in understanding a company's financial health and decision-making regarding profit allocation, as retained earnings are a significant component of shareholder equity on the balance sheet. They indicate how much profit has been reinvested in the company over time, reflecting the management's strategy and the company's potential for future financial performance.