The Factor Theorem is a fundamental concept in algebra that connects factors and roots of polynomials. It states that if a polynomial P(x) has a root at c, then the polynomial can be expressed as P(x) = (x - c)Q(x), where Q(x) is another polynomial. This means that x - c is a factor of P(x). Using the Factor Theorem, one can easily determine if a polynomial can be factored by checking if specific values make the polynomial equal to zero. If P(c) = 0, then x - c is a factor, simplifying the process of polynomial division and solving equations.