In a circular arrangement, the number of ways to arrange \( n \) people is \( (n - 1)! \). This is because when arranging people in a circle, one person can be fixed, and the remaining \( n - 1 \) people can be arranged around them.
For 5 people, the number of ways to arrange them in a circle is:
\[
(5 - 1)! = 4! = 4 \times 3 \times 2 \times 1 = 24
\]
Thus, the number of ways the 5 friends can be seated in a circular arrangement is 2(4) Therefore, the correct answer is (1) 2(4)