Let $k$ be a field of characteristic 0. The definition of a linear algebraic $k$-group of multiplicative type (m.t.) I've seen the most in the literature is that $G$ is of m.t. if it is a $\bar{k}/k$-twist of a closed subgroup of a torus. Some authors however define $G$ as a commutative group which is an extension of a finite group by a torus.
Why are these two definitions equivalent?
Also, from the first definition it's clear that a closed subgroup of a group of m.t. is again a group of m.t. From the second definition this is not that clear. Let me expand this a bit. Suppose $G$ is of m.t. Then $G$ is commutative and fits a s.e.s. $1 \to H \to G \to F \to 1$ with $H$ a torus and $F$ finite. Take a closed (commutative) subgroup $G'$ of $G$.
How do we construct a s.e.s. $ 1 \to H' \to G' \to F' \to 1$ with $H'$ a torus and $F'$ finite such that $G'$ fits it?
What I'm having trouble is seeing why $H'$ should be a torus again. My idea was to take the connected component of the identity of $G'$ and try to build a sequence with that, but I'm not too sure.
I don't know the answer to the first question, but I'll take a stab at the second. Suppose $G' \leq G$ is a closed subgroup of the commutative algebraic group $G$ of multiplicative type, fitting a short exact sequence $T \hookrightarrow G \twoheadrightarrow F$ with $T \cong (k^*)^n$ a torus and $F$ finite.
Let $T' = G'^0$ be the connected component of the identity (as suggested in the OQ). $T'$ is a connected subgroup of $G$, and $T = G^0$ is the maximal connected subgroup of $G$, so $T'$ is a subgroup of $T$. Thus $T'$ is a connected closed subgroup of a torus, hence also a torus.