A company’s cash reserve set aside to deal with unepected changes in business or to be used for expansion like purchasing other companies or to defend against a hostile takeover.
Additional meaning of War Chest:
The term war chest originates from medieval times when an actual chest would be kept filled with money in a time of war.
War chest may also be referred to as surplus cash, cash reserves, emergency reserves, acquisition funds, rainy day funds, or undistributed earnings within different contexts.