As academics who interact with senior and mid-level business managers on a regular basis, both informally and as consultants, the authors often note that ideas of theory and practice are not well developed among people outside of academia. It is posited that this deficit offers the prospect of less than optimal approaches to matters such as solving business problems, understanding the role of management education and nurturing useful interaction between businesses and business schools. This paper attempts to explain the role of theory and its relationship to practice in a business setting so that it can act as a standing reminder for business practitioners.